In today’s news release from the UK’s Rank Group, recently taken over by Malaysian-run gambling group Guoco, the company announced plans for a significant expansion of its land-based casinos business with the number of venues set to increase from 35 to 45 by the end of 2015. Of this number, 30 will be presented under the G Casino format (up from 15 at present). During the second half of the year Grosvenor will open a new G Casino at Stockton-on-Tees and complete the conversion of its Cardiff venue. The Grosvenor Connoisseur Casino in Kensington, London will close later this year but Rank will seek to open another London venue once suitable premises have been secured.
The expansion of the Grosvenor Casinos estate is part of a wider plan to grow the brand, including greater online distribution. During the first half of the year, Rank invested £8.6 million of capital in Grosvenor Casinos, the majority of which related to the continued expansion and modernisation of the brand’s casinos in Great Britain. Two venues – at Walsall and Plymouth - were converted to the Grosvenor brand’s G Casino format at a combined capital cost of £2.4 million.
Mecca Bingo has invested £7.3m so far this year to maintain and improve its estate including further work on the Full House Destination and Full House Local programmes. Full House Destination clubs are modern leisure venues that provide community games, entertainment, amusements and food and drinks in a social, female-focused environment. The first Full House Destination club was launched in Beeston, Nottingham in May 2009 - Mecca now operates six Full House Destination clubs. During the second half of 2011, Rank will convert its Wood Green club in London at a capital cost of £0.6 million – or around 40% of the average cost of the previous five conversions.
Currently, less than 10% of Rank’s revenue is generated in markets outside Great Britain.
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In the near-term this is unlikely to change as a consequence of the Group’s focus on Great Britain and the challenges faced in its secondary markets (Spain and Belgium). However, the company does see medium and long term opportunities in both Spain and Belgium and is to launch Enracha, a new community gaming brand for the Spanish market, distributed via licensed clubs.
In the first half of the 2011, revenues from Rank casinos rose by 5.8% to £125.2 million, while the bingo division saw a 6.6% increase to £146.3 million. The company’s fast growing online operations saw revenues rise by 24.1% to £34 million. Visitor spending was up 1% and visitor numbers rose 5.1% to 2.6 million, in part due to sustained improvements to the quality of food and drink in Grosvenor Casinos and Mecca Bingo venues.
Ian Burke, chairman of The Rank Group Plc said: “During the first half of 2011 we have maintained the progress of recent years as rising customer numbers drive profit and revenue. We have a portfolio of some of the strongest brands in UK gaming and the ability to reach our customers through our estate of well invested venues, our high quality websites and increasingly via mobile channels. The strength of our first-half results reflects the success of our efforts to entertain and delight our customers, with both customer visits and customer numbers up across the Group.” (E-07.28.11)
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